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breaking (up with) the bank — Report: Apple and Goldman Sachs are breaking up over money-losing Apple Card Goldman Sachs has lost billions of dollars on its consumer-focused businesses.

Andrew Cunningham – Nov 29, 2023 4:40 pm UTC EnlargeApple reader comments 17 with

Apple has repeatedly trumpeted the success of its financial services, a product lineup that now encompasses the Apple Card credit card, high-interest savings accounts, and a buy-now-pay-later service called Apple Pay Later.

But even if those products have proven reasonably popular with consumers, they havent been working out for the bank that Apple has partnered with to supply those services. Goldman Sachs consumer services have been losing the company billions of dollars, according to reporting from Bloomberg, CNBC, and The New York Times, among others. These losses have been driven in part by a much higher-than-usual loss rate on its credit card loansmeaning that people with Goldman-backed credit cards like the Apple Card are actually making their payments less often than people with credit cards from other banks.

Today, The Wall Street Journal reports that Apple has sent Goldman Sachs a proposal that will end their partnership within the next 12 to 15 months, leaving Apple to find a new backer for its financial products.

Though initiated by Apple, Goldman Sachs has allegedly been interested in ending its partnership with Apple for a while now. The financial losses seem like the biggest point of contention between the companies, but the WSJ also reports that Apple has frustrated Goldman Sachs execs by demanding that most people who apply for an Apple Card get approved, and that all Apple Card customers receive their bills on the same day (banks typically try to spread these bills out to avoid a deluge of customer service calls). Executives also partly blame Apple for regulatory issues that Goldman has had with the Consumer Financial Protection Bureau and the Federal Reserve. Advertisement

The WSJ doesn’t know whether Apple will be partnering with another company to provide its financial services, though Synchrony Financial is allegedly interested, and the WSJ reported earlier this year that American Express could also take over. Citigroup decided not to back the Apple Card back in 2019over (apparently well-founded) concerns that it wouldn’t earn the company any money.

In a statement to CNBC, Apple neither confirmed nor denied that it would be parting ways with Goldman Sachs but reiterated its support for the Apple Card and its other services.

“Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives, wrote an Apple spokesperson. The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them.”

Providing services like the Apple Card has become more important to Apple’s bottom line in recent years, as revenue growth from the iPhone, iPad, Mac, and other hardware businesses has slowed or flatlined. That hardware is still where the company makes most of its money, but the services businessincluding its financial services, but also iCloud, Apple TV+, Apple Music, and the App Storeis currently driving the growth that Apple’s shareholders demand. reader comments 17 with Andrew Cunningham Andrew is a Senior Technology Reporter at Ars Technica, with a focus on consumer tech including computer hardware and in-depth reviews of operating systems like Windows and macOS. Andrew lives in Philadelphia and co-hosts a weekly book podcast called Overdue. Advertisement Channel Ars Technica ← Previous story Next story → Related Stories Today on Ars

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New GOP bill aims to end debanking of crypto companies, ‘risky’ industries

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New GOP bill aims to end debanking of crypto companies, ‘risky’ industries

The new GOP bill comes on the heels of congressional hearings into “Operation Chokepoint 2.0” and bipartisan agreement that debanking should end.

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Triple killer convicted of raping ex-girlfriend ‘in act of spite’ before murdering her

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Triple killer convicted of raping ex-girlfriend 'in act of spite' before murdering her

A former soldier has been found guilty of raping his ex-girlfriend during a four-hour attack in which he killed her, her mother and her sister.

Warning: This article contains distressing details.

Kyle Clifford, 26, previously admitted murdering BBC racing commentator John Hunt’s wife Carol Hunt, 61, and their daughters Louise, 25, and Hannah, 28.

He also pleaded guilty to false imprisonment of Louise, who was tied and gagged with duct tape, and possession of the crossbow used to kill her and her sister, and the 10-inch butcher’s knife he stabbed their mother to death with.

strict embargo until a verdict is delivered
Kyle Clifford trial
Pic: Hertfordshire Police
Image:
Kyle Clifford. Pic: Hertfordshire Police

Prosecutors said he raped Louise in an “act of spite” during the attack in the Hunt family home in Bushey, Hertfordshire, on 9 July last year after she broke up with him 13 days earlier.

Clifford, who refused to attend the four-day trial at Cambridge Crown Court, claimed DNA evidence found on her body was from a consensual sexual encounter 16 days before the attack.

But he was found guilty by a jury after the court heard his explanation was “completely untenable”.

Louise
Pic: Facebook
Image:
Louise Hunt
Pic: Facebook

There was applause from the public gallery and cries of “yes!”, with one woman pumping her fists and another woman crying as the guilty verdict was heard.

The court was told Clifford began planning the murders after Louise, who told a friend he had a “nasty temper”, ended their 18-month relationship in a message on 26 June.

Judge pays tribute to family of the victims

Mr Justice Joel Bennathan said he will sentence Clifford on Tuesday for his “dreadful” and “almost unspeakable” crimes.

The judge paid tribute to the family of the deceased, adding: “They conducted themselves with huge dignity and restraint and I pay tribute to them.”

Detective Chief Inspector Nick Gardner said Clifford’s failure to attend his trial was an “absolute act of cowardice”.

He pointed out that the trial had been held in Cambridge to meet Clifford’s accessibility needs – he required a wheelchair after he shot himself with the crossbow.

“He has put the family through the ordeal of the trial, he has created everything that’s happened over this past week and failing to show his face is completely cowardly,” he added.

Carol Hunt pictured with her husband John Hunt.
Pic: Facebook
Image:
Carol Hunt pictured with her husband John Hunt.
Pic: Facebook

Hannah
Pic: Facebook
Image:
Hannah Hunt. Pic: Facebook

Clifford ‘planned a terrible attack’

Louise’s friends and family, who had described Clifford as “odd”, and “disrespectful, rude and arrogant”, backed her decision to end the relationship, sparked by his behaviour at a friend’s wedding.

Prosecutor Alison Morgan KC said Clifford, who had hidden relationships with two other women from Louise, was “angered” that she rebuffed his attempts to get back together.

“The defendant planned a terrible attack on Louise Hunt and her family, enraged by her rejection of him,” she told jurors during the trial.

“That attack included an act of sexual violence, committed out of spite, when she was restrained and unable to escape him.”

Read more
CCTV released shows timeline of crossbow and knife killer
Kyle Clifford pleads guilty to murders of racing commentator’s wife and daughters
Violent misogyny of kind promoted by Andrew Tate ‘fuelled rape and triple murder’

The  recovered crossbow.
Pic: Hetfordshire Police
Image:
The recovered crossbow.
Pic: Hertfordshire Police

She said the murders were “carefully planned and executed”, with Clifford tricking his way inside the family home on the pretext of returning Louise’s belongings and delivering a “thank you” card to her parents after checking Mr Hunt was not home.

He carried out “a brutal knife attack” on Carol, then waited for his ex-girlfriend to return home from working at her dog grooming business in a pod in the garden, the court heard.

It was added that customers of Louise’s business were using the gate at the side of the house, “not realising what was happening” when Carol was attacked and killed.

Louise was held for hours before Clifford shot her with the crossbow moments before her sister Hannah, a beautician, came home from work.

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Footage shows Clifford fleeing the Hunt family home

Hannah is heard on audio at the Hunt family home saying: “Kyle, I swear to God,” after finding him inside the house, the court heard.

The prosecution said Hannah messaged her partner, Alex Klein, telling him to “call police… immediately. To mine. Now. Kyle here. Police now. He’s tying us up”.

Clifford’s own sister messaged him on the day of the attacks when she realised he had taken the crossbow, asking: “What are you playing at?”

A loud whooshing sound was caught on a doorbell camera as the weapon was fired, while Hannah could be heard to shout, “Oh my god”, as she found her mother and sister.

The 10-inch butcher's knife Clifford used to commit the murders was never found but police released an image of the packaging.
Pic: PA
Image:
The 10-inch butcher’s knife Clifford used was never found but police released an image of the packaging.
Pic: PA


She was also shot but managed to call police, and emergency services found her collapsed in the doorway, but she died soon after.

Clifford, who served in the army from 2019 to 2022, shot himself in the chest with a crossbow as armed police found him in a cemetery the next day after a manhunt and is now paralysed from the chest downwards.

Violent misogyny promoted by the likes of Andrew Tate fuelled Clifford’s attack, prosecutors argued in court.

He also had been searching YouTube for the controversial influencer’s podcast the day before he carried out the four-hour attack, it was said in legal argument ahead of his trial.

It can only now be reported because the judge excluded the evidence from the trial, saying that it was of “limited relevance” and too prejudicial.

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Politics

US crypto reserve could boost Bitcoin market cap by $460B — Research

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US crypto reserve could boost Bitcoin market cap by 0B — Research

The market is still assigning a relatively low probability to the creation of a national crypto reserve, Sygnum Bank’s head of research said.

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